10-Year Treasury Yield Rises to 4.25%

U.S. Treasury yields showed mixed movement in recent trading, with the 2-year yield rising to 3.776% and the 10-year yield increasing to 4.250% in response to stronger-than-expected economic and employment data. Despite this uptick, the 10-year yield has been trending downward for the year, declining over 0.35 percentage point and remaining well below its 52-week high. The yield is also down for two consecutive quarters, marking the largest such drop since 2024, as markets anticipate possible Federal Reserve rate cuts amid subdued inflation. The 30-year Treasury yield reached 4.775% for the quarter, though it remains slightly down year-to-date and off recent highs. Investors are closely watching upcoming economic reports, including payrolls and manufacturing data, which could influence expectations for future Fed policy and impact yields further. Treasury yields continue to reflect volatility as traders weigh robust economic data against the likelihood of rate cuts.